Analysis of the 2025 Labor Standards Act's monthly working hours limit: How can companies avoid overtime risks?

The 2025 Labor Standards Act's provisions on the monthly working hours limit have once again become a topic of close concern for business owners and workers. As society pays more attention to labor rights and interests, arranging working hours reasonably and in accordance with the law has become an important responsibility that employers cannot ignore in their business management. Violation of regulations will not only result in high penalties, but may also lead to damage to image and crisis in production line operations.

New regulations on working hours under the Labor Standards Act, key analysis from 2025

The Labor Standards Act 2025 (hereinafter referred to as the “Labor Standards Act”) Monthly working hours limit The regulations have once again become a topic of close concern to business owners and workers. As society pays more attention to labor rights and interests, arranging working hours reasonably and in accordance with the law has become an important responsibility that employers cannot ignore in their business management. Violation of regulations will not only result in high penalties, but may also lead to damage to image and crisis in production line operations.

Key points of the monthly working hours limit of the Labor Standards Act 2025

According to the latest amendments to the Labor Standards Act, companies must comply with the following working hours management standards:

Total working hours control(Flexible upper limit) allows employers to manage extended working hours on an average basis over three months with the consent of the union or labor-management meeting, but "not more than 54 hours in one month and not more than 138 hours in total over three months."

Who is subject to the 2025 Labor Standards Act working hours cap?

Applicable objects

"As long as the Labor Standards Act applies, most industries are subject to the above-mentioned monthly working hours limit," including:

• Manufacturing, electronic technology, service industry
• Retail and wholesale, logistics, information industry
• Some professional and technical jobs (special exceptions must be approved by the competent authority)

Main laws and penalties

According to Articles 30 and 32 of the Labor Standards Act, if an employer extends the working hours of workers beyond the monthly limit, he or she may be fined NT$20,000 to NT$1 million and be ordered to make improvements within a specified period of time. In serious cases, the violation information may be exposed on the Ministry of Labor's website.

Common enterprise overtime risks

Common in enterprises Corporate Violation Cases The scenario is summarized as follows:

How can companies implement compliance in 2025? Four major management strategies

In order to avoid the risk of violating the law and strengthen the win-win situation between labor and capital, enterprises should proactively review and strengthen the working hours management system:

1. Establish a digital time recording system

• Introducing electronic clock-in machines and APP clock-in statistics
• Real-time monitoring of the working hours of the day and the month, automatic warning
• Regularly audit overtime, compensatory leave and weekday working hours calculation

2. Rolling estimates and flexible scheduling

• Plan the peak and off-season working hours in advance
• Make good use of total working hours control (flexible overtime) to avoid sudden surges in a single month
• Reserve legal flexibility for holiday adjustments to reduce the risk of overload due to temporary business growth

3. Establishment of labor union or labor-management meeting mechanism

• Regular labor-management meetings are held and written resolutions are implemented on working hours adjustment proposals
• Records available for inspection by competent authorities

4. Employee rights and communication education

• Held labor standards law education and training sessions
• Transparent communication of working hours, overtime, and repair mechanisms
• Encourage colleagues to promptly report dangerous signals of overtime work across months

Labor Standards Act Monthly Working Hours Limit Key Points Quick Guide

Analysis of corporate violation cases

Case A: Late-night overtime in the manufacturing industry

Due to the peak of exports, a certain technology manufacturing plant had an uneven distribution of overtime hours within three months, with as much as 60 hours of overtime in a single month. Only the company's internal consent records were kept for reference. It was eventually discovered by the labor inspection that although the working hours did not exceed 138 hours in three months, they had exceeded the limit in a single month. He was fined 200,000 yuan and was required to renegotiate future work schedules with the labor side.

Key lesson: Overtime of 54 hours in a single month still requires a resolution from the union or labor-management meeting and must be kept for record; it cannot be agreed upon verbally alone.

Case B: Incomplete records of overtime compensatory leave

The manager of a service industry chain handled the issue by using "compensatory time off to offset overtime work" but did not record the compensatory time off in writing. The resigned employee appealed and was required to pay a one-time overtime pay of NT$60,000. The company was therefore announced to have violated regulations.

Suggestion: An internal process for applying for compensatory leave and reconciling hours should be established, and there should be records of sign-in and sign-out.

FAQ: Common working hours questions and answers in 2025

Q1: Can I use compensatory time off instead of overtime pay if my working hours are extended?

A: Yes, with the worker's willingness and the employer's consent, but the compensatory leave period needs to be negotiated and clearly agreed upon by both parties. If the compensatory leave is not completed within the deadline, overtime wages for that day must still be paid.

Q2: If the total amount of overtime is controlled over a three-month period, is it necessary to report to the competent authority?

A: It must be approved by the trade union or labor-management meeting and filed with the local labor administration authority to avoid treating the flexible cap as a normal operation.

Q3: Are remote/flexible working hours also subject to the upper limit?

A: Regardless of whether you work remotely or have flexible working hours, the monthly working hours limit of the Labor Standards Act applies. The rights and interests of both parties should be protected through electronic records.

The significance of the adjustment of the monthly working hours limit of the Labor Standards Act to the industry and employees

The 2025 Labor Standards Act's monthly working hours cap strengthens companies' requirements for human resource scheduling and digital management, promoting:

• Transparency in labor-capital relations: Reducing the old-fashioned culture of rule by man and overtime work
• Work-rest balance: promoting employee health and reducing the risk of burnout
• New startups and traditional industry process upgrades: Promoting the introduction of digital time-saving tools

How should companies respond quickly to new laws?

1. Review the current shift planning and overtime process to identify possible overtime loopholes
2. Strengthen digital working time management and improve monitoring and reminder mechanisms
3. Implement the agreement on total overtime control with the union/labor-management meeting
4. Educate employees and supervisors to ensure that every colleague understands the legal procedures for make-up, overtime, and shift work
5. Regularly ask HR and Legal Affairs to review attendance records of each department and proactively warn of future peaks

Only by proactively establishing a culture of "setting working hours in accordance with laws and regulations and managing overtime scientifically" can companies avoid the risk of violating the monthly working hours limit of the Labor Standards Act and achieve a win-win situation for sustainable operations and employee welfare. In the future, as the concept of labor rights rises, proper compliance with laws and regulations will become a corporate competitiveness. Please review your internal company regulations as early as possible and work together to create a healthy and stable workplace.